HOUSE BILL REPORT

HB 1734

BYRepresentatives Appelwick, Taylor, Pruitt, Crane,P. King, Brough and Todd

Revising the business and occupation taxation of the care of children.

House Committe on Ways & Means/Revenue

Majority Report:  Do pass.  (9)

      Signed by Representatives Appelwick, Chair; Basich, Dellwo, Holland, Rust, Taylor, Schoon, Valle and Winsley.

House Staff:Rick Wickman (786-7136)

AS PASSED HOUSE FEBRUARY 15, 1988

BACKGROUND:

State reimbursements are provided through the Department of Social and Health Services for foster and day care of children. In addition, Indian organizations provide reimbursements for foster care.  These reimbursements are provided to offset the cost of providing children's services.

Business and occupation taxes are currently due on these reimbursements affecting children over the age of eight (B&O service rate of 1.5%).

SUMMARY:

Provides a deduction from business and occupation taxation for amounts received from DSHS and Indian organizations as reimbursements for foster and day care of children, regardless of age.

Revenue:    The bill has a revenue impact.

Fiscal Note:      Requested January 26, 1988.

Effective Date:The bill contains an emergency clause and takes effect June 1, 1988.

House Committee ‑ Testified For:    Greg Pierce, Department of Revenue.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Exempting business and occupation tax on DSHS reimbursements for foster and child care is necessary to be consistent with existing exemptions on governmental income for other non-profit social organizations.

House Committee - Testimony Against:      None Presented.